The long-run aggregate supply curve will shift to the left when

When shortages or surpluses persist for any extended period of time, they

A) are a consequence of failure to allow prices to perform their rationing function. B) are evidence of an underlying imbalance between demand and supply. C) are evidence of goods being scarce. D) indicate that there is no price that will clear the market in the case of some goods.

(Consider This) Which of the following claims is not made by opponents of a value-added tax (VAT)?

A. Savings and investment is discouraged because future consumption is penalized. B. The VAT is regressive, potentially leading to additional progressive taxes to offset the regressive VAT. C. Sellers bear a disproportionately large burden of the tax. D. The VAT is a hidden tax, and thus easier to raise to support the expansion of government.